10-1116c.   Lease-purchase agreements; conditions; protest petition andelection, when.Any lease-purchase agreement entered into pursuant to thisact shall be subject to the following conditions:

      (a)   If the proposed agreement is for a term exceeding the current fiscalyear of the municipality, it shall be approved by a majority vote of allmembers of the governing body.

      (b)   If the proposedagreement involves the acquisition of land orbuildings by a municipality other than a county, school district or communitycollege, is for a term of three or more years, and provides for paymentsin any year in excess of 3% of the total amount budgeted by themunicipality for expenditure during the current year, excluding debtservice, a notice thereofspecifying the purpose and the total of all payments shall be publishedonce each week for two consecutive weeks in a newspaper of generalcirculation within such municipality. If, within 30 daysfollowing the lastpublication of such notice, a petition in opposition tothe agreement signed by not less than 5% of the qualified voters of suchmunicipality is filed with the appropriate county election officer, no suchagreement shall take effect unless and until the same is approved by amajority of the qualified voters of such municipalityvoting at an election thereon. Any such electionshall be called and held in accordance with the provisions of K.S.A.10-120, and amendments thereto, or in accordance with the provisions of themail ballot election act.

      (c)   If the municipality is a county, school district or community collegeand the proposed agreement involves the acquisition of land or buildings, isfor a term exceeding the current fiscal year of the municipality, and providesfor annual payments which in the aggregate exceed $100,000, the governing bodyof suchmunicipality first shall adopt a resolution stating its intent to enter intosuchlease-purchase agreement. The resolution shall specify the total of allpayments to be made pursuant to the agreement and the purpose for which suchagreement is to be entered into. The resolution shall be published once eachweekfor two consecutive weeks in a newspaper of general circulation within themunicipality. If a protest petition signed by not less than 5% of thequalifiedvoters of the municipality, as determined by the vote for secretary of state atthe last general election, is filed with the appropriate county electionofficer within 30 days following the lastpublication of the resolution, no such agreement shall take effect unlessapproved by a majority of the qualified voters of the municipality voting at anelection thereon. Any such election shall be called and held in the mannerprovided by K.S.A. 10-120, and amendments thereto, or in accordance with theprovisions of the mail ballot election act. If no such protest petition isfiled within the time limitation contained herein, the governing body of themunicipality may enter into such agreement. If an election is held pursuant toaprotest petition and a majority vote is cast in favor of the proposition, thegoverning body of the municipality shall have authority to enter into suchagreement.

      (d)   If the proposed agreement is for a term exceeding thecurrent fiscalyear of the municipality, the agreement shall specify the following: (1)The amount or capital cost required to purchase the item if paid for bycash, (2) the annual average effective interest cost, and (3) the amountincluded in the payments for service, maintenance, insurance or othercharges exclusive of the capital cost and interest cost.

      History:   L. 1990, ch. 74, § 3;L. 1996, ch. 269, § 2; July 1.